When you consider the fact that the energy sector’s market cap in the S&P 500 is about 10.6%, would anyone argue that the index needs to be re-weighted to reflect the money that is flowing into the energy sector. If you’re not convinced, consider the fact that that the current weighting is below below the thirty year average.
Still not convinced. Here’s a 2 year chart on Chevron:
Chart Courtesy of Big Charts
Take a look at this 2 year chart on Conoco Phillips:
Chart Courtesy of Big Charts
Here’s an interesting article on the same subject.